Samsung being cut out of A7 chip production

Alexey Zhukov

14:21, April 11, 2013

Apple is giving A7 chip production over to TSMC, instead of long-time A-series chip manufacturer Samsung, an executive with one of Samsung's Korean partners has indicated to The Korea Times. "Apple is sharing confidential data for its next A7 system-on-chip (SoC) with the Taiwan Semiconductor Manufacturing Company (TSMC)," the person is quoted as saying. "TSMC has begun ordering its contractors to supply equipment to produce Apple’s next processors using a finer 20-nanometer level processing technology."

An official at a Samsung parts supplier backs this view. "Apple is cutting the use of Samsung displays for its products. Now the deterioration of ties has expanded to chips. You should remember that the application business is one of Samsung’s new growth engines in which the firm is heavily investing," he remarks. Other sources allege that Samsung is looking to fill in the gap left by Apple with the production of its own chips for Galaxy phones and tablets.

The Times' account supports other recent rumors that Apple is shifting A-series work over to TSMC. Apple and Samsung have become increasingly hostile towards each other, as the latter defends itself against lawsuits while posing a serious challenge to the iPhone's dominance. Apple has accused Samsung of riding on ideas stolen from the iPhone and iPad.